Clipper Bulk Downsizing Due to COVID-19 impact

In its efforts to combat all-time low freight markets caused by the Covid-19 pandemic, Danish bulker operator Clipper Bulk A/S has begun downsizing on its staff, to cut costs.

According to the company, by the end of April, 24 of 91 ashore jobs would be cut with the majority impacting the head office in Copenhagen.

“The dry cargo market has struggled with unsustainably low freight rates for years, but the Covid-19 pandemic has made matters worse and caused a steep downturn in demand and freight rates. We need to adapt to this new reality, and we are making these changes to stay ahead of the situation,” says Clipper Group CEO Peter Norborg.

Intending to stay afloat and survive the impact of the global pandemic, the dry bulk operator will be focusing on its profitable niche operations.

These operations are expected to fully cover Clipper Bulk’s cost base after the downsizing, keeping the company afloat. Also, Clipper Bulk will be staying open to the spot market to serve its long-standing customers and partners.

Clipper Bulk operates 65-85 vessels, including tonnage operated by the two Clipper Bulkmanaged pools: The Clipper Handy Pool (28-38,000 dwt vessels incl. fully fitted loggers and grabs-fitted vessels) and The Clipper Bulkhandling Pool (57-64,000 dwt, grabs-fitted vessels).

The company also commented saying that the process of the integration of the newly acquired Bulkhandling Pool will be unaffected by the organizational changes.

“The pool’s activities are unaffected, and we look forward to announce new pool members soon. We will have adequate capacity to handle significant growth in the pool’s activities,” says Norborg.

Clipper Bulk recently took over rights, trademarks, and key people to merge the Bulkhandling Pool with Clipper’s own Ultra Pool. Members are currently joining the new Clipper Bulkhandling Pool, and vessels are planned to be transferred within the near future.